r Computation oftaxcon LTCG and STCG 82,160

llustration5
Iincome of Shri Rahul, aresident of
lndia, for the previous year
inclusive oflongg term capital gain of Rs.
.1,50,000 is Rs. 3,60,000. 2022-23,
(a) Compute the tax liiability for the assessment year
What shall e
be the
t tax
2023-24
(b) liability if income is Rs. 3,10,000 inclusive of
on.sale of shares (listed shares STCG
subject to STT) Rs. 1,90,000.
Solution
Computation of Tax liability of Mr. Rahul
P.Y. 2022-23 A.Y.2023-24
Particulars Rs. Rs. Rs.
(a) Tax on Long termcapital gain:
(1,50,000-40,000) 1,10,000 x20% 2,000
Tax on other income:
Total Income Rs. 3,60,000
Less : LTCG -1,50,000

Other income 2.10,000| Nil

Income being without tax 2.50,00|

 Income TaxTheory, Law &Practice:
1427
Deficitfor
exemptedincome
(250,000-2,10,000)
40,000
AY.2023-0 Assessment of Individuals
Solution :
1428

adjustedfromLTCG Computation of Tax liability of Mr. Mohan

PY 2022-23, AY 2023-24
Particulars Rs Rs
Tax onIncome
22,000or12.500 70,00,20
Les RehateUs8TA 12508 Less Tax on long tem capital gain 100
14,000

9.500 (3,00,000 -2.30,000)

Add HEC @49% Tax on short tem capital ga1n on sale of
20,000,15
Tu Payable
Tax on Incom:
98% secunties (Transaction tax pasd) 100
3,000
(b) 9,000
Tax on STCG on sale of
shares Tax on other lncome: 'Nil , Be1ng below
Rs 2.50,000
x
(1.90000- 1_30,000) 60,000 10 Tax on Income 17,000
Less Rebate US87A Least of Rs 12.500 or 17,000 12.500
Tax on ocher IDCome
Total income 3.10,000 4.500
- STCG -1,90,000
Add. HEC 4,500, I80
1.20,000 100
Other income
Income being not chargeable io tax 2,50,000
4,680
1.30,000 Tax payable
Deficat for exempted income
(250.00- 12000) ad1sted from STCG Note: Other Income 1.00,000
Less Rebate us 87A: Rs. 9,000or Les: PPF deposit US 80C 80,000
Rs 12,500, whichever is Least 9,000
Net Income 20,000
Exempted income (Slab wath nil tax) 2.50,000
Tax payable
Defic1t for exempted income adjusted
Note: STCG on sale of l1sted shares subjct to STT are taable (a 15 (2.50,000 - 20,000) from LTCG 2.30,000
Rebate u's 87A is least of Rs. I2,500 or Tax on Income is allowed when tauht
Income does not exceed Rs 5,00,000 Note:

llustration 6 I. Tax on STCG on sale of lsted shares is 159%

Toal income of Shri Mohan. aresident in Inda for the previous year 2022-2
consists of the following
Long ierm Cap1ial Gain on sale of land
Short tem Caplal Gain on Sale of Securnities
on which securities transacton tax has been paid
Other income
He deposited Rs 80,000 towards PPF
Compute the tax payable by Mr Mohan.
2 Since STCG on sale of shares are taable a 15a deficit of Rs 2.10,000for
exempted slab of income is adjusted from LTCG which are taxable at 20%
Rs 3 Rebute us87Ais allowed. uf the taxable income does not exceed Rs S,00,000
Illustration7
3.00.00
Total income of Mr Viji ares1dent of Ind1a for the previous year 2022-23 is
2000 Rs. 16,00,000. It includes Rs. 20,000 on account of income arising from secunties
100.0 which is taxable under the head profits and Gains from business or profession
He has paid secunties transacton tax of Rs 1.200
 Income la
1427
income:40,000 Assessment of Individuals 1428
exempted
Deficitfor
(2.50,00- 2,10,000) Solution :
adustedfromLTCG Computation of Tax liability of Mr. Mohan
PY 2022-23, AY
2023-24
Particulars Rs. Rs
Taxon Income 12,500
87A22,000or
Lss:RebateUs 250 Less: Tax on long term capital gain: 70,000 x
20
100
14,000

9,500 (3,00,000 2,30,000)

Add: HEC@4% Tax on short tem capital gain on sale of

Tax Payable
Tax on Income:
9830 securities (Transaction tax paid) 20,000 x
100
3,000
(b) 9,000 Tax on other Income:'Nil, Being below
sale of shares:
Tax on STCGon
Rs. 2,50,000
15
60,000x-
(1,90,000- 1,30,000) 100 Tax on Income 17,000
Less : Rebate U/S87A :Least of Rs. 12,500 or 17.000 12,500
Tax on other income :
Total income 3,10,000
4,500
- STCG -1,90,000
Add: HEC 4,50x4 180
Other income 1,20,000 100
2,50,000
Income being not chargeable to tax Tax payable 4,680
Deficit for exempted income 130,000
(2.50,000- 1,20,00) adjusted from STCG
Note: Other Income 1,00,000
Less: Rebate w's 87A: Rs. 9,000 or Less : PPF deposit U/S 80C 80,000
Rs. 12,500, whichever is Least 9,000
Net Income 20,000
N Exempted income (Slab with nil tax) 2,50,000
Tax payable
Deficit for exempted income adjusted
Note: STCG on sale of listedshares subject to STT are taxable (@ I5%. (2,50,000 - 20,000) from LTCG 2,30,000
Rebate w's 87A is least of Rs. 12,500 or Tax on Income is allowed when taxabla
income does not exceed R. 5,00,000. Note:
Illustration 6 1. Tax on STCG on sale of listedshares is 15%.
Total income of Shri. Mohan, aresident in India for the previous year 202-23 2. Since STCG on sale ofsharesare taxable (@ 15%, deficit of Rs. 2,10,000 for
exempted slab of income is adjusted from LTCG which are taxable at 20%.
consists of the following: 3. Rebate u/s 87A is allowed, if the taxable income does not exceed Rs. 5,00,000.
Rs.
Illustration7
Long term Capital Gain on sale of land 3,00,00
Short tern Capital Gain on Sale of Securities Total income of Mr. Viji aresident of India for the previous year 2022-23 is
on which securities transaction tax has been paid 20,00 Rs. 16,00,000. It includes Rs. 20,000 on account of income arising from secuities
Other income 1,00,00 which is taxable under the head profits and Gains from busines or profession.
He deposited Rs. 80,000 1owards PPF. He has paid securities transaction tax ofRs. 1,200.
Compute the tax payable by Mr. Mohan.
 Income Tax Theory, Law&Practice: A.Y.
1429
laxpayable by Mt. Vijforthe prcvious year2022-23.
Compulethe are:
savings&Investrment
Mr Vjay's
85,(00
DepostinPPERs
loan for house cquiredRs. I,00,000
Rcpaymentof
(Other than interest)
years ofape.
ComputeTax liabilityifhe is of82
Solution :
Computation of Tax liability of Mr. Viji
PY 2022-23, AY 2023-24

Purticulars Rs.
14,50,000
Les: Tax on Total Income of Rs.
Tax on First Rs. 2,50,000 Nil

Tax on income between Rs. 2,50,000- 5,00,000

2.50,00%5
100
12,500|
Ta on income betwen Rs. 5,00,000 - 10,00,000
20
500,000 1,00,000
J00
Tas on income exceeding Rs. 10,00,000
(14,50,000-10,00,000)
1,35,000
Total tax 2,47,500

Add HEC 4% of Tax 2,47,500 9,900

100

Tax payable 2,57,400

If Vijay is of 82 years he is Super Senior citizen: Tax on Income:

upto 5,00,000- Nil
S,00,000 -10,00,000 @, 20%: 1,00,000
10,00,000 - 14,50,000 @, 30%: 135,000
Total Tax 2,35,000
 Taxable
Income : Assessment
Individuals
Note of
Gross
Total
Less: Income :
2. l.
If
such Securities
ble
me
Deduction income
transactions
arises
transaction
us
80C taxed
issaleby
of tax
along
Securities is
assumed
with
income.
other as to
business be
deducted
transaction
from
business
income.
00 1,50,016,0000,000 the
Rs. income

from 14.30